[2008-07-09]  Unilever tea seeks NSE delisting
Brooke Bond Group, the British tea giant, wants Unilever Tea Kenya (UTKL) de-listed from the Nairobi Stock Exchange (NSE).

The tea group has launched a takeover bid for the minority shares in UTKL at a cost of Sh356.5 million after which it would have it pullout of the bourse.

"If the offer is successful, UTKL shall be de-listed from the Nairobi Stock Exchange," Brooke Bond Group said in a public notice.

The Group currently holds 88.24 per cent in UTKL and seeks to take up the remaining 11.76 per cent, or 5.75 million ordinary shares, at Sh62 each.

Suspension

The notice issued by the London firm said an intention of the take-over was served on UTKL on July 1.

Sources said the firm had already applied to the Capital Markets Authority (CMA) and NSE to have trading of the stock suspended.

All of the UTKl’s issued ordinary shares are currently listed on the Main Investment Market Segment of the NSE.

The notice said approval of CMA and NSE would be required for the deal while Brooke Bond shareholders and directors have already given approval.

Brooke Bond said the proposed offer would also be conditional on shares it currently holds together with the new ones, it intends to acquire, resulting in a holding of not less than 90 per cent.

The current UTKL started as Brooke Bond Kenya. But, the name was changed to Unilever Tea Kenya Ltd in 2004.

According to statistics, UTKL today is one of the largest commercial enterprises in the country employing more than 20,000 people.

Its contribution to the economy as a foreign exchange earner has also increased from Sh0.25 million in 1972 to Sh5.5 billion currently.

The company’s total land holding stands at 16,223 acres and owns 20 tea estates, eight factories manufacturing an average of 32 million kg of tea per year.

UTKL produces black, green and specialty teas for the markets far spread as Europe, US, Pakistan, Japan, the Middle East and Australia.


Source: STANDARD